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Energy consumption and growth in South America: Evidence from a panel error correction model

  • Apergis, Nicholas
  • Payne, James E.

This study examines the relationship between energy consumption and economic growth for a panel of nine South American countries over the period 1980-2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. Pedroni's heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, energy consumption, the labor force, and real gross fixed capital formation with the respective coefficients positive and statistically significant. The Granger-causality results indicate both short-run and long-run causality from energy consumption to economic growth which supports the growth hypothesis.

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Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 6 (November)
Pages: 1421-1426

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Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1421-1426
Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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